It certainly wouldn't be my choice to buy make up for a present, BUT the product on Dragons' Den was very interesting. Firstly, it is called The Natural Play Make-up Company, with the emphasis on natural and play. Its founder was keen to stress the absence of any harsh chemicals, so that the make-up doesn't damage young skins. That's the free from and allergy issues addressed. Also, the dreaded packaging, including the pots , which Deborah Meaden is so fussy about, is made from recycled craftpaper. That's the issues about the environment and sustainability dealt with.
As for the shock, horror feelings about children and make-up, the idea of this particular product was that children could explore their identity, a bit like an extension of going to the dressing-up box. (Boys were included too). It wasn't designed to be worn in the street every day, but more for parties and creative play at home.